This study to assess the current situation of Mexican immigrants in California and project future possibilities constructs a demographic profile of the immigrants, examines their economic effects on the state, and describes their socioeconomic integration into California society. Models of immigration/integration processes are developed and used to project future immigration flows. The study's major conclusion is that widespread concerns about Mexican immigration are generally unfounded: Mexican immigrants are not homogeneous, and they differ in their characteristics and their effects on the state. Overall, the immigrants provide economic benefits to the state, and native-born Latinos may bear the brunt of competition for low-skill jobs. In general, immigrants contribute more to public revenues than they consume in public services; however, the youthfulness of the population, their low incomes, the progressiveness of the state income tax structure, and the high costs of public education produce a net deficit in educational expenditures. Continued rapid immigration from Mexico and projected shifts in the industrial and occupational structure of California could disrupt the traditional mobility process of immigrants. These changes will make education an increasingly important key to the occupational and social mobility of Mexican immigrants' children and grandchildren. (NEC)